via a special arrangement with Informa Economics, Inc.
Allow 401k and IRA participants to tap
some savings interest & tax free
This column is copyrighted material, therefore reproduction
or retransmission is prohibited under U.S. copyright laws.
I frequently give speeches throughout this
great country, and I always like the questions asked and the comments
made on a host of topics. One topic has been brought up in various ways
by several people -- and it should be an idea that lawmakers and the White
House should at least consider if -- as is likely -- another economic
stimulus is needed.
The suggestion: Allow 401k (and IRA) participants
the opportunity to tap up to $5,000 (or, pick a number) without
penalty and tax free. There would be few short-term budget impacts
and the money would help many middle incomers cope with a host of rising
costs and must-make payments.
There could be some stipulations on the use of the
payment, but whenever I am asked about it, I at least think that would
be a fast approach to getting cash flow to those most in need.
Every upside has a downside, as some would say savings are
a must for long-term financial planning. But a $5,000 tax-free
pullout of what is non-government money anyway could be just the thing
needed to bolster an anemic economy.
This column is copyrighted material, therefore reproduction or
retransmission is prohibited under U.S. copyright laws.